Del's and Rodney's are two plumbing services in a gentrifying area of South EastLondon. Within the area they service, the two firms operate as a duopoly andtogether serve one hundred percent of the available local market. One of their keylines of business is visiting customer's homes to install a new shower rail. A studentproject has been investigating the local plumbing business and has estimated thefollowing information for Del's and Rodney's:Total demand for new shower rails per week is given byP = 200 - 4QWhere Q is total market demand and can be divided between Del's (qd) andRodney's (qr) such thatQ = qd + qrAssuming that the marginal cost of serving an extra customer is £40 for each, andthat marginal revenue for Del is given byMRd2008qd - 4qrAnd marginal revenue for Rodney is given byMRrThen2008qr - 4qd8CONTINUED a) Calculate the number of shower rails each will install per week and the price theywill charge for installation.b) Explain briefly why it would be better for consumers if Del's were able to knowhow many visits Rodney's would make in a week before setting its own output.

In the Cournot competition model, each firm assumes that its competitors' output will remain…

a) Calculate the number of shower rails each will install per week and the price they will charge for installation. b) Explain briefly why it would be better for consumers if Del's were able to know how many visits Rodney's would make in a week before setting its own output.

a) Calculate the number of shower rails each will install per week and the price they will charge for installation. b) Explain briefly why it would be better for consumers if Del's were able to know how many visits Rodney's would make in a week before setting its own output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

. A book that sounds just perfect for me, Kate Raworth’s Doughnut Economics is available on Amazon for $40.35 for the hardback and $15.99 for paperback. From the publisher’s perspective, the difference in the cost between each version of the book seems negligible; it may cost a little bit more to produce the hard cover, but certainly not more than 2.5 times as much. Hardback versions usually also get published a few months before paperback versions are published. How do you explain the different prices for essentially the same product, given that the cost to the publisher of providing each type of book is basically the same? Amazon also offers the Kindle digital e-book version for $11.87. The cost to Amazon to produce a new “copy” for the next consumer is virtually nothing; just the sending of some data to the customer’s device. Why is Amazon able to charge $11.87 when its cost is basically zero and the market for books is likely very competitive? Note:- Do not provide handwritten…
Assume you are selling season tickets for a team in the National Football League. What are the fixed and variable costs associated with pricing these season tickets? When you look at the existing season ticket prices for the team, how would you sell those same season tickets at a 10 percent higher price?
How does the goal of the firm influence the sales maximization and profit maximization decision.
A hair salon offers three services: haircuts, color treatment, and styling. The salon charges $40 for a cut, $65 for color, and $35 for styling. Last month, the salon sold 68 haircuts, 34 color treatments, and 22 styling sessions. If the salon's costs for the month totaled $2850, what was its profit? Instructions: Round your answer to the nearest dollar. $
If the theater starts to charge $796.25 for these seats, the theater will sell (a) premium seats a week. Scalpers will charge (b) , which is (c) more than the price listed at the theater’s box office (give your answers to two decimals).
What is the maximum profit for individual pricing
Only typed solution
The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece of software. Consumer Types Administrative Assistants Marketing/Sales Accountants Price per each Profit on just that software PowerPoint Total profit on all software $76 $200 $25 A la carte pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? PowerPoint Excel $100 $100 $250 $ Word $200 $125 $25 Excel Word Bundled Pricing If Microsoft were to only sell the three products as a bundle, what price should they set for bundle and what would profits be? Bundled Price $ Total Profit S Mixed Pricing Suppose that Microsoft offered a bundle of all three for $375, but it also offers a price of $200 for each software separately. What is the new profit level for this pricing scheme?$ Is this mixed-pricing scheme…
Aa4. Phoenix Dubai is a small shop that has been operating in the United Arab Emirates for several years. The owner, Mrs. Cornelia Alphonce has decided that it is time for her to decrease the prices of all the goods in the shop in order to maximize revenue. What information should the owner base on this decision?
Q3
Becasue of the housing bubble, many houses are now selling for much less than their selling price just two to three years ago. There is evidence that home owners with virtually identical houses tend to asl for more if they paid more for the house.What fallacy are they making?
A restaurant should not stay open for an additional hour if it's _exceeds_ a) average benefit; average cost b) average cost; average benefit c) marginal benefit; marginal cost d) marginal cost; marginal benefit